Indian broker Groww’s IPO fully subscribed on day two

Groww’s parent company, Billionbrains Garage Ventures, reported its US$754 million IPO fully subscribed on the second day of bidding, driven by strong interest from retail investors.

Groww, India’s largest stock broker by active users, received bids for 387.7 million shares against 364.8 million on offer as of November 6, according to exchange data.

Retail investors submitted orders for 237.7 million shares, about 3.6x their allotted portion.

Groww’s IPO is one of the largest in India this year, after listings from Tata Capital, LG Electronics India, and HDB Financial.

The offering includes a new issue worth 10.6 billion rupees and an offer for sale of 557.2 million shares from existing investors, including Tiger Global and Peak XV Partners.

Analysts noted that Groww’s valuation is higher than industry peers and may be difficult to sustain over time.

The IPO, which opened earlier this week, will close on November 7.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Groww’s IPO values it at 33.8x earnings, steeper than Angel One’s 19.16x; customer assets trail wealth peers

At INR 100, Groww’s upper band implies a market value of INR 61,736 crore and a price-to-earnings of 33.8x on FY25 earnings 1. Angel One trades at 19.16x 1. Groww holds customer assets of INR 2.16 lakh crore, while 360 One Wealth and Asset Management (WAM) sits at INR 5.81 lakh crore 1.
Groww posted a 44.92% profit margin in FY25 1 yet trails peers on revenue from operations and net profit 1. The grey market premium sits at INR 15, which signals about a 15% bump on the upper band 2. Some analysts warn this may be speculative 2. A large offer-for-sale of secondary shares could add supply after listing 2.

Tech vendors can court mid-tier brokers as the top four shed 20 lakh clients in H1 2025

India’s top four discount brokers are Groww, Zerodha, Angel One and Upstox 3. They together lost 20 lakh active clients in H1 2025 3. Groww slipped from 123.52 lakh to 120.72 lakh between July and August 3. Smaller and niche brokers logged modest gains 3.
Vendors in KYC and compliance can focus on mid-tier brokers that are adding clients. Use NSE’s public broker-wise active client data to spot that growth. The Securities and Exchange Board of India (SEBI) tightened Futures & Options (F&O) rules, which cut derivative volumes by about 38% between June 2024 and June 2025 2. Fast-growing brokers face heavier compliance work, so they will lean on vendors to keep growth against weakened incumbents 2.